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Sale of Goods Act

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Sale of Goods Act
Case Study 1

Question 1
Under the Sale of Goods Act 1979, A contract of Sale is a contract where a seller transfers or agrees to transfer goods or a service to a buyer for money, in the course of a business. The transfer must be for money, barter or exchange are not covered. The Act covers sales and agreements to sell. Question 2
In contracts for the sale of goods and supply of services certain basic provisions are implied by statute in order to provide protection to purchasers. The main provisions derive from the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982. Section 12 of The Sale of Goods Act protects purchasers where the seller does not have the right to sell the goods. Section 13 relates when the goods are sold by description there is an implied term that the goods will correspond to that description. Section 14 of the Act ensures that businesses must sell goods that are of satisfactory quality and fit for their purpose. Where the goods are sold by sample there is an implied term in Section 15 that the goods will correspond to the sample in quality
Section 12 applies to all contracts for sale of goods so it will cover private sales in addition to where goods have been purchased from a shop or other business. Is the implied term that relates to title, The seller must have the right to sell the goods, that they are free from any undisclosed charge or encumbrance. Sub section (1) implies a term that the seller has the right to sell the goods. This covers situations where the seller is selling stolen goods (whether the actual thief or a subsequent sale in the chain). This term is a condition in all sales. In addition to applying to stolen goods Section 12(1) also applies where the seller does not have the right to sell the goods where to do so would be breach

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